Question 1

Is the EV FBT exemption still available in 2026?

Accepted Answer

Yes. The FBT exemption for eligible electric vehicles remains in effect for the 2025-26 FBT year and beyond. Battery electric vehicles and hydrogen fuel cell vehicles that meet the eligibility criteria continue to qualify.

Question 2

Can I still salary package a plug-in hybrid vehicle?

Accepted Answer

Plug-in hybrid electric vehicles no longer qualify for the FBT exemption for new arrangements from 1 April 2025. Existing arrangements may continue under grandfathering provisions.

Question 3

How much can I save by salary packaging an EV?

Accepted Answer

An employee earning $120,000 per year who salary packages a $55,000 EV through a novated lease could save between $10,000 and $15,000 per year in combined tax and running cost savings.

Question 4

What is the maximum vehicle price for the EV FBT exemption?

Accepted Answer

The vehicle must be valued below the luxury car tax threshold for fuel-efficient vehicles, which is $91,387 (GST-inclusive) for the 2025-26 financial year.

Question 5

Does the EV FBT exemption affect my HECS-HELP repayments?

Accepted Answer

While no FBT is payable, the value of the benefit is still reportable on your income statement and is included in income tests for HECS-HELP, Family Tax Benefit, and other means-tested entitlements.

EV Salary Packaging and FBT Exemption Guide 2026

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